The maximum sum that can be paid out by a liability insurance. This is usually fixed when taking out a policy e.g 1,000,000 euros.

"What is an Indemnity Limit ?

Indemnity Limits apply to Liability types of insurance such as Public Liability, Products Liability and Employers Liability but will also be found in Professional Indemnity insurance.

Put simply, an indemnity limit is the maximum amount that an insurer will pay out for any one claim and usually within any one policy year (assuming a yearly insurance policy).

Unlike a Sum Insured an Indemnity Limit however may be specified as an any one occurrence limit with no limit as to the total cover provided during the policy year."

Source below.



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Note added at 1 hr (2013-11-29 10:16:11 GMT)
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Also sometimes called the "combined limit" when it covers various different kinds of liability

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Note added at 1 hr (2013-11-29 10:28:12 GMT)
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Thanks also to AllegroTrans for the UK alternative "limit of cover"